World famous business and motivational speaker and philosopher, and one of my favorite life mentors; Jim Rohn said this.

“Formal education will make you a living. Self-education will make you a fortune.”-Jim Rohn       September 17, 1930 – December 5, 2009 

I listen to a lot of talk radio here in the Kansas City Area. My favorite time is Saturday morning when all the financial shows are on. Some of these guys are pretty savvy and they make a strong argument for whatever financial vehicle they promote.  One of the most respected local CPA’s, Peter Newman host of “Money Line. “ always brings in a variety of guests and I feel he genuinely wants you to succeed at whatever financial plan you have. If you don’t have a financial plan then it is time to get one.

What I have discovered is that no school teaches you what you need to know to get to the goal of financial independence.  Other favorites I listen to are; Adam Bold founder of the Mutual Fund Store.  Dean Barber of Barber Financial Group and another favorite Chris Butler host of Capitalist Pigs.  (I just love that name!)

 One thing that is constant.  Have a plan.  Don’t wait until your 56 (like me) to figure out one. My kids are starting to do pretty well but I still need them to take the next step of self-education.  My parents gave me love and a good work ethic but they did not know squat about planning their future. My uncle Don did! He retired at age 50 with his house paid off and the ability to live off his own resources. He was a lineman for KCPL. Not an executive, not a supervisor, just a lineman working with a crew. He always took a vacation, and always had the ability to buy a new car every 2 or 3 years and always paid cash.  He didn’t share that with me. L I just remember him always saying he is not going to work past age 50 and he did not.  Me? I need big chunks of money in order to get myself into a position to say I can live off my own investments. I had it!  I blew it! I screwed it up! Made it! Lost it! So, now I am working on making it again and this time I plan to keep it!

Here is the good news!
Not only do we have some of the greatest financial minds who will educate us for free,
we live in the greatest country in the world and in America anyone can make it.Like the famous James Brown song “Living In America” says:You might not be looking for the promised land, but you might find it anyway…

 I have always said that everyone should know how to read the Wall Street Journal. Sad they don’t teach that in high school. If I was in charge that would be mandatory reading and make sure students had an understanding how our economy works. 

Another great resource right here in Overland Park Kansas is the On Line Trading Academy. Ron Booth conducts a free half day seminar that gives you insight and background into how our markets work and shows you how to trade your own stocks and investments.  This is one course I will be taking because there is no way to understand it all without understanding the market.  You don’t need a college degree to know how to trade and how to make money trading your own stocks. Even you don’t want to trade your own stocks. Knowing the lingo; what others are doing with your money is an important aspect of your plan.

If you are in your 20’s and maybe even 30’s there is no reason you cannot have a million dollars put back for your retirement and then live off of your own resources.  We cannot depend on Social Security. You don’t have to make a lot of money.  I know people who have done it successfully and make less than $30,000 a year.  It’s not how much you make. It’s what you do with that return. 

Start on the road to “Self education” and you can be financially free by that age of 50. 

Here is a fact you might not have realized. You are going to be 50. 

Subscribe to my blog and watch for my book. “Everything You Should NOT D0 if You Want to be Rich.” 

Since the market is full of books telling you what to do, I figure there aren’t many books telling you what not to do. Unless you just want to be broke at age 60 you can pretty much just turn to the music stations and keep doing what your doing.  If you invest 3-4 hrs a month in yourself you can be on the road to the real American Dream, Financial Independence.

Here is the first steps in “Self education.”
Dave Ramsey 710 AM 11-2 Monday to Friday 
Chris Butler Capitalist Pigs  8am Saturday morning 
Adam Bold The Mutual Fund Store 980 am Saturday morning 10-11 
Dean Barber Americas Wealth Management Show 980 Saturday afternoon 1-3
Ron Booth On Line Trading Academy   You can call Paul Parsons to schedule your free seminar  913-956-7056. 
Jim Rohn 
Peter Newman’s Money Line Link  
Adam Bold Mutual Fund Store
Chris Butler The Capitalist Pigs
Dave Ramsey

I don’t care how you word it. You pay more per month. What makes me mad is they are so casual about it. I am not the only one who feels this way .  See what the guys at Think Big Work Small have to say about it.

HR5872 and HR5981 has passed and has already been signed while you weren’t looking. These are the things that affect you and most of you don’t even know about it?

Here is a comment from the Deputy Assistant Secretary Vicki Bott
“Over this past week, the industry responded with support of the new fee structure, but voiced strong concern about having system changes ready in time to meet the original Sept. 7, 2010 deadline,” said US Housing and Urban Development (HUD) deputy assistant secretary Vicki Bott.

My concern is that statement “ industry responded with support for the new fee structure.”  Who in the mortgage industry is agreeing with raising someone’s monthly payment? Having a higher payment means people get less house for the dollar because they can’t qualify for the higher payment. If you are a home buyer using FHA loans would you agree to a higher payment of .75%?  Lenders and Real Estate Professionals are working to help these people BEFORE the increase goes into effect so I am pretty sure they are not the ‘industry” that responded!

HR5872 and HR5981

This gives FHA the authority to change the way FHA loans are insured. ( Mortgage Insurance) Instead of the majority of the Mortgage Insurance being financed into the loan. They are now going to require you the consumer who is getting an FHA loan to pay more per month.

Why are they doing this? CASH Hud can use to fund programs it wants to promote. The problem is they need your money to do it.

Here is one : HUD (FHA) will offer 1 billion in loan subsidies as much as $50,000 per home owner to make their mortgage payment. There are many many more.

FHA is struggling and because they want to be more like conventional lending. FHA is now about 70+% of the home loans.

They cannot promote their Social Side so the answer! YOU PAY MORE!

FHA (Federal Housing Administration) Answer of course, pass the problem along to the new home buyer.

As of October 11, 2010 FHA will be enforcing two new bills HR5872 and HR5881 these bills allow FHA to increase the annual MIP (Mortgage Insurance Premium)while they decrease PMI (Private Mortgage Insurance).

What this means to you as a loan officer or real estate professional is the potential for your clients payments to go up.
What does this mean to the home buyer? In the example provided by above we see that:
Today’s current rate of 0.55% your payment would be $1,192. As of September 7, 2010 to get an FHA Home Loan, you will pay a upfront fee of 1% and a monthly rate anywhere from 0.85% to 0.90% PMI. This brings us to the middle example with a payment of $1,235. Here the upfront PMI is actually less and them you add in the Financed MIP and your payment will increase based on the example.

Steve Hillyer